Despite the slight dip in the VN-Index on the final trading day of the week, the market has enjoyed two consecutive weeks of gains and is currently at a historic peak. The stock market is witnessing a massive influx of capital, attracting investors with liquidity reaching up to VND 40,000-60,000 billion per session, and even hitting a record high of VND 76,000 billion on the HOSE alone.
The stock market has become an appealing investment avenue. Recently, investors have been keenly following the news that, following the launch of the KRX system, the authorities plan to introduce new trading products.
Investors’ Enthusiasm
According to Nguoi Lao Dong reporters’ observations on various investment forums, groups, and communities, many investors are excited about the prospect of extended trading hours, including the ability to trade during the midday break, sell stocks immediately after a buy order is matched, and engage in intraday trading (T0)…
Mr. Vo Van Huy, Head of Premium Clients at DNSE Securities Company, analyzed that the current break in Vietnam’s stock market is 1.5 hours, which can cause disruptions and potentially miss international market movements. Implementing a continuous trading session would mean longer trading hours (such as from 9 am to 3 pm), similar to major markets like the US and Europe.
The stock market has been on an upward trajectory, attracting investors’ capital
Continuous trading allows for timely reflection of economic news and corporate updates, reducing interruptions and consequent volatile price movements upon resumption. This would appeal to foreign investors, boost market liquidity, and support the market’s upgrade process.
“Many markets, including the US and Hong Kong, have adopted continuous trading, resulting in significantly higher liquidity. On the other hand, there are risks of increased pressure on the system and individuals. Securities companies need to upgrade their infrastructure to handle larger trading volumes and prevent order congestion. Employees and investors may experience fatigue from continuous work, leading to mistakes. Moreover, the KRX system may encounter technical risks and may not be entirely stable,” said Mr. Vo Van Huy.
Mr. Tran Anh Giau, Sales Director of a securities company, commented that continuous trading and T0 can bring both advantages and disadvantages to individual and institutional investors. Continuous trading enhances liquidity, enabling investors to buy and sell stocks without waiting until the end of the day.
“Investors can capitalize on intraday price fluctuations to realize profits immediately, maximizing their gains. T0 trading allows investors to react swiftly to news or events impacting the market, especially beneficial in volatile markets. The T0 mechanism and continuous trading are common practices in many developed markets, attracting foreign capital,” said Mr. Tran Anh Giau.
Cautionary Notes on Continuous Trading
According to several securities companies, the move towards continuous trading and the introduction of T0 products are notable steps to enhance competitiveness, liquidity, and integration for Vietnam’s stock market.
Mr. Nguyen Thanh Lam, Director of Analysis at Maybank Securities Company’s Retail Client Division, shared that continuous midday trading has been practiced for a long time in the US and most European countries. Since late 2021, Korea has adopted continuous trading to boost competitiveness, and while Japan has a midday break, there is pressure to change this to enhance competitiveness. If Vietnam opts for continuous trading, it will be a progressive decision that increases competitiveness and further improves market liquidity.
Continuous midday trading can be stressful for individual investors due to constant market monitoring, while organizations face complex system and risk management challenges…
“Regarding T0, if implemented, it will be a product that allows intraday trading of the same stock. This is not a settlement cycle adjustment but an additional product that provides investors with more options, already practiced in the US, Europe, Japan, South Korea, Singapore, and Malaysia. Introducing T0 is a suitable step considering the current scale of Vietnam’s stock market,” said Mr. Nguyen Thanh Lam.
However, some experts caution that intraday trading often coincides with high price volatility, potentially leading to rapid losses without proper risk management strategies. Continuous short-term trading can induce significant psychological pressure, prompting investors to make irrational emotional decisions. Additionally, large organizations or investors may exploit T0 to manipulate prices by “pumping and dumping” within the same day…
Dragon Capital: After a Strong Rally, Sensitivity to Negative Factors May Increase
Overall, Dragon Capital maintains a positive outlook. The firm believes that the recent setbacks are only temporary and that the economy will rebound in the coming months. With a strong foundation and positive fundamentals, the future looks bright, and Dragon Capital is confident in the potential for growth and success.
Bank Stocks ‘Unleashed’ After Stellar Performance
The banking stock group, which was a key driver in pushing the VN-Index to new highs in previous sessions, today (August 15) faced significant profit-taking pressure.
The VN-Index Soars to New Heights: A Thriving Market with Explosive Liquidity
The VN-Index soared to new heights this afternoon (August 12th), reaching a record high of 1,608.22 points. This surge in market liquidity fueled a vibrant and energetic trading atmosphere.
Market Beat: Foreigners Maintain Heavy Sell-off, VN-Index Retreats to 1,630 Points
The trading session concluded with the VN-Index dipping 10.69 points (-0.65%), settling at 1,630 points. Likewise, the HNX-Index witnessed a decline of 2.81 points (-0.99%), closing at 282.34 points. The market breadth tilted towards decliners, as 609 stocks closed in the red, while 242 stocks ended in the green. The VN30 basket mirrored this trend, with 19 stocks losing ground against 9 gainers and 2 stocks remaining unchanged.
“Port of Nghe Tinh Reports Increased Profits Post-Audit Thanks to Land Lease Concessions, Shares Plummet Post-Three Peak Sessions”
Following a review, the Ha Tinh Port Joint Stock Company (HNX: NAP) has upwardly adjusted its profit by 5% due to a reduction in land lease costs. This pushes the company’s first-half 2025 profit to over VND 15 billion, the highest in its history. NAP’s stock has recently undergone a significant correction after reaching a peak of VND 16,000 per share.
